Tuesday, November 18, 2008

Uncertainty is bad for the economy

Note: This video was posted on ReasonTV on Halloween, so when he talks about 6 weeks ago, he is talking about September.

Uncertainty is bad for the economy. Some parts of the future are easy to predict: The sun will rise in the morning. The Detroit Lions aren't going to the playoffs. And prices, wages, and the stock market usually go up. Crisis and disasters, whether real or imagined, can cause investors to be a whole lot more cautious with their money. They pull their money out of stocks and put it into bonds. Or they pull it out of bonds and put it into gold.

To give a example from the 90's, remember when Clinton finally admitted to the affair? In hindsight, that was a big nothing. But as he was confessing his sins on TV, CNN had a stock ticker with a red arrow pointing down. People didn't know what was going to happen, so they expected the worst.

No comments:

Pages

DISCLAIMER

Per the by-laws of the Libertarian Party of Allen County, the Chair is the official spokesperson of LPAC in all public and media matters.

Posts and contributions expressed on this forum, while being libertarian in thought and intent, no official statement of LPAC should be derived or assumed unless specifically stated as such from the Chair, or another Officer of the Party acting in his or her place, and such statements are always subject to review.

About Commenting

Keep it clean and relevant to the post. If you have a question that isn't related to a recent post, email me at enders.robert@gmail.com . You can also email me if you want to make an anonymous comment.